BILL REQ. #:  H-1154.2 

     AN ACT Relating to calculating child support; and amending RCW 26.19.020, 26.19.065, 26.19.071, 26.19.075, and 26.19.080.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

Sec. 1   RCW 26.19.020 and 1998 c 163 s 2 are each amended to read as follows:
     (1) The following economic table applies to child support orders not subject to subsection (2) of this section:

Sec. 2   RCW 26.19.065 and 1998 c 163 s 1 are each amended to read as follows:
     (1) Limit at forty-five percent of a parent's net income. Neither parent's ((total)) child support obligation owed for all his or her biological or legal children may exceed forty-five percent of net income except for good cause shown. ((Good cause includes but is not limited to possession of substantial wealth, children with day care expenses, special medical need, educational need, psychological need, and larger families.))
     (a) Each child is entitled to a pro rata share of the income available for support, but the court only applies the pro rata share to the children in the case before the court.
     (b) Before determining whether to apply the forty-five percent limitation, the court must consider whether it would be unjust to apply the limitation after considering the best interests of the child and the circumstances of each parent. Such circumstances include, but are not limited to, leaving insufficient funds in the custodial parent's household to meet the basic needs of the child, comparative hardship to the affected households, assets or liabilities, and any involuntary limits on either parent's earning capacity including incarceration, disabilities, or incapacity.
     (c) Good cause includes, but is not limited to, possession of substantial wealth, children with day care expenses, special medical need, educational need, psychological need, and larger families.
     (2) ((Income below six hundred dollars)) Presumptive minimum support obligation. (a) When ((combined)) a parent's monthly net income is ((less than six hundred dollars)) below one hundred twenty-five percent of the federal poverty guideline, a support order of not less than ((twenty-five)) fifty dollars per child per month shall be entered ((for each parent)) unless the obligor parent establishes that it would be unjust ((or inappropriate)) to do so in that particular case. The decision whether there is a sufficient basis to deviate below the presumptive minimum payment must take into consideration the best interests of the child and the circumstances of each parent. Such circumstances can include leaving insufficient funds in the custodial parent's household to meet the basic needs of the child, comparative hardship to the affected households, assets or liabilities, and earning capacity. ((A parent's))
     (b) The basic support obligation of the parent making the transfer payment, excluding health care, day care, and special child-rearing expenses, shall not reduce his or her net income below ((the need standard for one person established pursuant to RCW 74.04.770)) the self-support reserve of one hundred twenty-five percent of the federal poverty level, except for the presumptive minimum payment of ((twenty-five)) fifty dollars per child per month or ((in cases where the court finds reasons for deviation)) when it would be unjust to apply the self-support reserve limitation after considering the best interests of the child and the circumstances of each parent. Such circumstances include, but are not limited to, leaving insufficient funds in the custodial parent's household to meet the basic needs of the child, comparative hardship to the affected households, assets or liabilities, and earning capacity. This section shall not be construed to require monthly substantiation of income.
     (3) Income above ((five thousand and seven)) twelve thousand dollars. The economic table is presumptive for combined monthly net incomes up to and including ((five)) twelve thousand dollars. ((When combined monthly net income exceeds five thousand dollars, support shall not be set at an amount lower than the presumptive amount of support set for combined monthly net incomes of five thousand dollars unless the court finds a reason to deviate below that amount. The economic table is advisory but not presumptive for combined monthly net incomes that exceed five thousand dollars.)) When combined monthly net income exceeds ((seven)) twelve thousand dollars, the court may ((set support at an advisory amount of support set for combined monthly net incomes between five thousand and seven thousand dollars or the court may)) exceed the ((advisory)) presumptive amount of support set for combined monthly net incomes of ((seven)) twelve thousand dollars upon written findings of fact.

Sec. 3   RCW 26.19.071 and 2008 c 6 s 1038 are each amended to read as follows:
     (1) Consideration of all income. All income and resources of each parent's household shall be disclosed and considered by the court when the court determines the child support obligation of each parent. Only the income of the parents of the children whose support is at issue shall be calculated for purposes of calculating the basic support obligation. Income and resources of any other person shall not be included in calculating the basic support obligation.
     (2) Verification of income. Tax returns for the preceding two years and current paystubs shall be provided to verify income and deductions. Other sufficient verification shall be required for income and deductions which do not appear on tax returns or paystubs.
     (3) Income sources included in gross monthly income. Except as specifically excluded in subsection (4) of this section, monthly gross income shall include income from any source, including:
     (a) Salaries;
     (b) Wages;
     (c) Commissions;
     (d) Deferred compensation;
     (e) Overtime, except as excluded for income in subsection (4)(h) of this section;
     (f) Contract-related benefits;
     (g) Income from second jobs, except as excluded for income in subsection (4)(h) of this section;
     (h) Dividends;
     (i) Interest;
     (j) Trust income;
     (k) Severance pay;
     (l) Annuities;
     (m) Capital gains;
     (n) Pension retirement benefits;
     (o) Workers' compensation;
     (p) Unemployment benefits;
     (q) Maintenance actually received;
     (r) Bonuses;
     (s) Social security benefits; ((and))
     (t) Disability insurance benefits;
     (u) Business income; and
     (v) Income from self-employment.
     (4) Income sources excluded from gross monthly income. The following income and resources shall be disclosed but shall not be included in gross income:
     (a) Income of a new spouse or new domestic partner or income of other adults in the household;
     (b) Child support received from other relationships;
     (c) Gifts and prizes;
     (d) Temporary assistance for needy families;
     (e) Supplemental security income;
     (f) General assistance; ((and))
     (g) Food stamps; and
     (h) Overtime or income from second jobs beyond forty hours per week averaged over a twelve-month period worked to provide for a current family's needs, to retire past relationship debts, or to retire child support debt, when the court finds the income will cease when the party has paid off his or her debts.
     Receipt of income and resources from temporary assistance for needy families, supplemental security income, general assistance, and food stamps shall not be a reason to deviate from the standard calculation.
     (5) Determination of net income. The following expenses shall be disclosed and deducted from gross monthly income to calculate net monthly income:
     (a) Federal and state income taxes;
     (b) Federal insurance contributions act deductions;
     (c) Mandatory pension plan payments;
     (d) Mandatory union or professional dues;
     (e) State industrial insurance premiums;
     (f) Court-ordered maintenance to the extent actually paid;
     (g) Up to ((two)) five thousand dollars per year in voluntary ((pension payments)) retirement contributions actually made if the contributions ((were made for the two tax years preceding the earlier of the (i) tax year in which the parties separated with intent to live separate and apart or (ii) tax year in which the parties filed for dissolution)) show a pattern of contributions during the one-year period preceding the action establishing the child support order unless there is a determination that the contributions were made for the purpose of reducing child support; and
     (h) Normal business expenses and self-employment taxes for self-employed persons. Justification shall be required for any business expense deduction about which there is disagreement.
     Items deducted from gross income under this subsection shall not be a reason to deviate from the standard calculation.
     (6) Imputation of income. The court shall impute income to a parent when the parent is voluntarily unemployed or voluntarily underemployed. The court shall determine whether the parent is voluntarily underemployed or voluntarily unemployed based upon that parent's work history, education, health, and age, or any other relevant factors. A court shall not impute income to a parent who is gainfully employed on a full-time basis, unless the court finds that the parent is voluntarily underemployed and finds that the parent is purposely underemployed to reduce the parent's child support obligation. Income shall not be imputed for an unemployable parent. Income shall not be imputed to a parent to the extent the parent is unemployed or significantly underemployed due to the parent's efforts to comply with court-ordered reunification efforts under chapter 13.34 RCW or under a voluntary placement agreement with an agency supervising the child. ((In the absence of information to the contrary, a parent's imputed income shall be based on the median income of year-round full-time workers as derived from the United States bureau of census, current populations reports, or such replacement report as published by the bureau of census.)) In the absence of records of a parent's actual earnings, the court shall impute a parent's income in the following order of priority:
     (a) Full-time earnings at the current rate of pay;
     (b) Full-time earnings at the historical rate of pay based on reliable information, such as employment security department data;
     (c) Full-time earnings at a past rate of pay where information is incomplete or sporadic;
     (d) Full-time earnings at minimum wage in the jurisdiction where the parent resides if the parent has a recent history of minimum wage earnings, is recently coming off public assistance, general assistance-unemployable, supplemental security income, or disability, has recently been released from incarceration, or is a high school student;
     (e) Median net monthly income of year-round full-time workers as derived from the United States bureau of census, current population reports, or such replacement report as published by the bureau of census.

Sec. 4   RCW 26.19.075 and 2008 c 6 s 1039 are each amended to read as follows:
     (1) Reasons for deviation from the standard calculation include but are not limited to the following:
     (a) Sources of income and tax planning. The court may deviate from the standard calculation after consideration of the following:
     (i) Income of a new spouse or new domestic partner if the parent who is married to the new spouse or in a partnership with a new domestic partner is asking for a deviation based on any other reason. Income of a new spouse or new domestic partner is not, by itself, a sufficient reason for deviation;
     (ii) Income of other adults in the household if the parent who is living with the other adult is asking for a deviation based on any other reason. Income of the other adults in the household is not, by itself, a sufficient reason for deviation;
     (iii) Child support actually received from other relationships;
     (iv) Gifts;
     (v) Prizes;
     (vi) Possession of wealth, including but not limited to savings, investments, real estate holdings and business interests, vehicles, boats, pensions, bank accounts, insurance plans, or other assets;
     (vii) Extraordinary income of a child; ((or))
     (viii) Tax planning considerations. A deviation for tax planning may be granted only if the child would not receive a lesser economic benefit due to the tax planning; or
     (ix) Income which has been excluded under RCW 26.19.071(4)(h) should be considered if the person earning that income asks for a deviation for any other reason.
     (b) Nonrecurring income. The court may deviate from the standard calculation based on a finding that a particular source of income included in the calculation of the basic support obligation is not a recurring source of income. Depending on the circumstances, nonrecurring income may include overtime, contract-related benefits, bonuses, or income from second jobs. Deviations for nonrecurring income shall be based on a review of the nonrecurring income received in the previous two calendar years.
     (c) Debt and high expenses. The court may deviate from the standard calculation after consideration of the following expenses:
     (i) Extraordinary debt not voluntarily incurred;
     (ii) A significant disparity in the living costs of the parents due to conditions beyond their control;
     (iii) Special needs of disabled children;
     (iv) Special medical, educational, or psychological needs of the children; or
     (v) Costs incurred or anticipated to be incurred by the parents in compliance with court-ordered reunification efforts under chapter 13.34 RCW or under a voluntary placement agreement with an agency supervising the child.
     (d) Residential schedule. The court may deviate from the standard calculation if the child spends a significant amount of time with the parent who is obligated to make a support transfer payment. The court may not deviate on that basis if the deviation will result in insufficient funds in the household receiving the support to meet the basic needs of the child or if the child is receiving temporary assistance for needy families. When determining the amount of the deviation, the court shall consider evidence concerning the increased expenses to a parent making support transfer payments resulting from the significant amount of time spent with that parent and shall consider the decreased expenses, if any, to the party receiving the support resulting from the significant amount of time the child spends with the parent making the support transfer payment.
     (e) Children from other relationships. The court may deviate from the standard calculation when either or both of the parents before the court have children from other relationships to whom the parent owes a duty of support.
     (i) The child support schedule shall be applied to the mother, father, and children of the family before the court to determine the presumptive amount of support.
     (ii) Children from other relationships shall not be counted in the number of children for purposes of determining the basic support obligation and the standard calculation.
     (iii) When considering a deviation from the standard calculation for children from other relationships, the court may consider only other children to whom the parent owes a duty of support. The court may consider court-ordered payments of child support for children from other relationships only to the extent that the support is actually paid.
     (iv) When the court has determined that either or both parents have children from other relationships, deviations under this section shall be based on consideration of the total circumstances of both households. All child support obligations paid, received, and owed for all children shall be disclosed and considered.
     (2) All income and resources of the parties before the court, new spouses or new domestic partners, and other adults in the households shall be disclosed and considered as provided in this section. The presumptive amount of support shall be determined according to the child support schedule. Unless specific reasons for deviation are set forth in the written findings of fact and are supported by the evidence, the court shall order each parent to pay the amount of support determined by using the standard calculation.
     (3) The court shall enter findings that specify reasons for any deviation or any denial of a party's request for any deviation from the standard calculation made by the court. The court shall not consider reasons for deviation until the court determines the standard calculation for each parent.
     (4) When reasons exist for deviation, the court shall exercise discretion in considering the extent to which the factors would affect the support obligation.
     (5) Agreement of the parties is not by itself adequate reason for any deviations from the standard calculation.

Sec. 5   RCW 26.19.080 and 1996 c 216 s 1 are each amended to read as follows:
     (1) The basic child support obligation derived from the economic table shall be allocated between the parents based on each parent's share of the combined monthly net income.
     (2) ((Ordinary)) Health care ((expenses)) costs are not included in the economic table. Monthly health care ((expenses that exceed five percent of the basic support obligation)) costs shall be ((considered extraordinary health care expenses. Extraordinary health care expenses shall be)) shared by the parents in the same proportion as the basic child support obligation.
     (3) Day care and special child rearing expenses, such as tuition and long-distance transportation costs to and from the parents for visitation purposes, are not included in the economic table. These expenses shall be shared by the parents in the same proportion as the basic child support obligation. If an obligor pays court or administratively ordered day care or special child rearing expenses that are not actually incurred, the obligee must reimburse the obligor for the overpayment if the overpayment amounts to at least twenty percent of the obligor's annual day care or special child rearing expenses. The obligor may institute an action in the superior court or file an application for an adjudicative hearing with the department of social and health services for reimbursement of day care and special child rearing expense overpayments that amount to twenty percent or more of the obligor's annual day care and special child rearing expenses. Any ordered overpayment reimbursement shall be applied first as an offset to child support arrearages of the obligor. If the obligor does not have child support arrearages, the reimbursement may be in the form of a direct reimbursement by the obligee or a credit against the obligor's future support payments. If the reimbursement is in the form of a credit against the obligor's future child support payments, the credit shall be spread equally over a twelve-month period. Absent agreement of the obligee, nothing in this section entitles an obligor to pay more than his or her proportionate share of day care or other special child rearing expenses in advance and then deduct the overpayment from future support transfer payments.
     (4) The court may exercise its discretion to determine the necessity for and the reasonableness of all amounts ordered in excess of the basic child support obligation.